Inflation keeps Egypt’s non-oil economy under pressure in September

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The Egyptian non-oil sector remained under pressure in September, as a result of inflation, energy rationing, restrictions on imports, and a decline in demand, the S&P Global Egypt PMI™ report showed on October 4th.

Last month saw considerable shrinkage in the activity of the private sector owing to contracted demand and inflated prices, the report revealed.

The headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index™ (PMI™) – an indicator of operating conditions in the non-oil private sector economy – hit 47.6 in September, unchanged from that seen in August, but still below the 50-point neutrality threshold.

The index showed a deterioration in business conditions, as companies are still cutting their purchases, while their inventories are depleting.

However, businesses showed a positive sentiment towards future growth in output in a year.

"Firms nevertheless remain hopeful that macroeconomic conditions would improve in the medium-term, but for now, non-oil Egyptian businesses are challenged to operate in an environment which includes persistently high prices, weak demand, and growing uncertainty,” Economist at S&P Global Market Intelligence Shreeya Patel commented.